RUSSIAN JOURNAL OF EARTH SCIENCES VOL. 9, ES2004, doi:10.2205/2007ES000274, 2007
[5] In order to analyze the effects of globalization we need to know how globalized the countries are, but how could we exactly measure it? There are two systems that give a quantitative and qualitative measurement of globalization. The first was introduced by Swiss Institute of business research (KOF Konjunkturforschungsstel der ETH Zurich; globalization.kof.ethz.ch/), second was founded by the international organization called Carnegie Endowment for International Peace (CEIP) (www.atkearney.com; www.foreignpolicy.com). Both institutions carry out an annual quantitative rating - the index of globalization ( Ig ). The first system (KOF system) rates 123 countries, while the second (CEIP system) rates only 62.
[6] The index of globalization allows to estimate the scale of integration of vast majority of countries in the world and to compare the different countries in this parameter. The index of globalization in system KOF is determined by three measurements: economic ( Ige ), social ( Igs ) and political ( Igp ). It could also be estimated as the sum of components Ig = 0.34 Ige + 0.37 Igs + 0.29 Igp with corresponding weight factors. In the CEIP system this index is determined by four measurements: economic ( Ige ), personal contact ( Igpc ), technological ( Igt ) and political ( Igp ). It is also estimated as the sum of the specified components with equal weight factors.
[7] While comparing the measurements of an globalization index in both systems, it is easy to see, that personal and technological measurements in the CEIP system can be reduced to social measurement as it is in the KOF system. Therefore, for further convenience in comparison between two, we will unit personal and technological measurements in one social measurement for the CEIP system.
[8] 1. Economic measurement of globalization ( Ige ) demonstrates a constant growth of interrelation between people's needs, on the one hand, and possibility of goods and services production and distribution through the international trade, foreign investments and the spread of transnationalization. Both indexes are determined by the following general indicators: level of trade as the sum of all exports and imports and foreign direct investments as the sum of their inflow and outflow. In the KOF system additional indicators are used: portfolio investments as the sum of absolute cost of their inflow and outflow and incomes of nonresidents from the investments as a percentage of GDP. Economic measurement of globalization of any country is a directly proportional dependence on its political stability and the developed legislature for both of which it takes long time to change and develop. In other words, this parameter is very sensitive to a level of investor's confidence to receive profits from their investments.
[9] 2. Social measurement of globalization ( Igs ) is the factor reflecting a degree of integration of the ordinary human being, his/her family, his/her life and work into the international public institutes. This measurement in both systems is estimated by such indicators, as intensity of personal contacts in banking, telecommunication and tourist fields with other countries, a level of international tourism's development and a level at which man is interacted with mass media and telecommunications. In addition, KOF system takes into account the two following indicators: percentage of foreign citizens in the country and a level of international trade country.
[10] 3. Political measurement of globalization ( Igp ) reflects political weight and influence of any country allows estimating scale of expansion of political participation. In both systems the specified measurement is quantitatively estimated with use of such general indicators, as: membership of the country in the international organizations and its participation in specified missions of the United Nations Security Council. The amount of foreign embassies in the country is used in the KOF system as an indicator, while the amount of ratified international agreements is used in the CEIP system. A Swiss scholar Axel Drehel considers (see globalization.kof.ethz.ch/), that political globalization promotes the country's development with the help of its influence on the world stage. The outcomes of political globalization are less significant than of economic and social globalization, but as a result they more global [Drehel, 2005].
Citation: 2007), Risks and gains of globalization for developing countries, Russ. J. Earth Sci., 9, ES2004, doi:10.2205/2007ES000274.
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